In the latest close session, Rithm (RITM) was down 2.05% at $9.57. The stock's performance was behind the S&P 500's daily loss of 0.45%. On the other hand, the Dow registered a loss of 0.63%, and the technology-centric Nasdaq decreased by 0.78%.
Heading into today, shares of the real estate investment trust had lost 4.78% over the past month, lagging the Finance sector's loss of 2.1% and the S&P 500's loss of 1.99%.
Market participants will be closely following the financial results of Rithm in its upcoming release. The company is forecasted to report an EPS of $0.51, showcasing a 5.56% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.47 billion, indicating a 33.3% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.26 per share and a revenue of $5.84 billion, representing changes of -3.83% and +33.21%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Rithm. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Rithm currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Rithm is presently trading at a Forward P/E ratio of 4.32. This represents a discount compared to its industry average Forward P/E of 11.74.
It is also worth noting that RITM currently has a PEG ratio of 0.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Financial - Miscellaneous Services industry was having an average PEG ratio of 1.08.
The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 159, placing it within the bottom 36% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Rithm Capital Corp. (RITM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).